Five KwaZulu-Natal municipalities received clean audit reports, the ANC said on Tuesday.
"This is a sign of positive financial management and good governance," the party's provincial secretary Sihle Zikalala said.
He said it was an indication the province was a shining example of excellent service delivery in the country.
Zikalala said that according to the report by Auditor General Terence Nombembe, five of the 13 municipalities that received clean audits in the country were in KwaZulu-Natal.
Most municipalities that received unqualified audits were also in the province.
"The ANC calls on the MEC of co-operative governance Nomusa Dube to immediately arrest the concerning trend of irregular expenditure which seems to be on the rise in some of our municipalities," he said.
The ANC said it intended working with all affected parties to ensure better management of resources in municipalities.